Western Bay of Plenty property values show modest 2.0% decrease in latest rating revaluation
Western Bay of Plenty District property owners will soon receive their new three-yearly rating valuations in the post, following completion of the district’s latest revaluation.
Preliminary results show the district’s total rateable value has decreased by 2.0% since the previous revaluation in 2022.
Updated valuations have been prepared for all 26,104 properties in the district by independent valuers Quotable Value (QV) on behalf of Western Bay of Plenty District Council. They reflect the likely price a property would have sold for on 1 August 2025, excluding chattels.
The total rateable value for the district is now $42.76 billion. Land value across the district is $21.78 billion, representing a decrease of 8.5% over the three-year period, reflecting broader market conditions since the district’s last revaluation on 1 September 2022.
Residential
Following the nationwide market peak in late 2021/ early 2022, residential property values across the Western Bay of Plenty moderated through 2022 before stabilising in mid-2023. Market conditions have remained relatively subdued through to the revaluation date. An increase in vacant land supply, combined with escalating construction and holding costs, has applied downward pressure to land values over the period.
The lower end of the market has demonstrated relative resilience, supported by sustained demand from first-home buyers. In contrast, higher interest rates and tighter lending serviceability requirements have constrained activity across the mid- to upper-value segments. Overall, residential values have declined by an average of 7.0% between 1 September 2022 and 1 August 2025. The average dwelling value as at the revaluation date sits at $977,000, while the average land value has reduced by 9.1% to $574,000.
According to QV Upper North Island Regional Manager, Joe Holmes, the Western Bay of Plenty district is no exception to the general market trends observed across the wider Bay of Plenty and Waikato regions. The market has experienced a broad-based softening since 2022, accompanied by a clear “flight to quality” across most residential asset classes — characteristic of a buyer-driven market. Well-presented, modern homes continue to attract stronger enquiry and maintain value more effectively than the wider market, whereas older or less well-maintained properties are generally recording more pronounced value declines.
Lifestyle
Lifestyle property values across the Western Bay of Plenty District have softened broadly in line with the wider residential market, with entry-level affordability continuing to underpin demand at the lower end.
“The lifestyle sector in Western Bay of Plenty has closely tracked the residential market, with purchasers exercising increased caution and selectivity,” said Mr Holmes. “We are observing stronger enquiry for smaller, elevated and well-located lifestyle properties that offer manageable land areas, good access and realistic commuting distances to Tauranga and surrounding employment centres. In contrast, larger holdings or properties requiring significant capital investment are attracting more limited interest. Entry-level affordability has helped support relative resilience at the lower-value end of the lifestyle market.”
Demand for vacant lifestyle land has remained subdued in recent years, reflecting lower levels of new dwelling construction and limited appetite for additional lifestyle subdivisions. Escalating earthworks, infrastructure and servicing costs continue to weigh on development feasibility. Over the revaluation period, the average capital value (CV) of an improved lifestyle property has declined by 9.9% to $1,436,000, while the corresponding average land value has reduced by 14.6% to $770,000.
Commercial/Industrial
There are 385 commercial and 322 industrial assessments within the Western Bay of Plenty District.
Across the district, commercial performance has been mixed over the revaluation period. Retail centres servicing Tauranga’s growth corridor and key townships have generally maintained stable occupancy. This has contributed to a general lift in rental levels; however, yields have typically softened by approximately 0.50%–1.00% across the region. This outward yield movement has largely been driven by the rapid increase in the Official Cash Rate (OCR), which has elevated borrowing costs and tempered investor demand and confidence. As a result, capital value movements have varied by location, with Katikati recording minor positive growth, while the Te Puke retail market has experienced a modest decline.
Overall, commercial capital values across the district have recorded minimal net change, with land values decreasing by approximately 5.0%, reflecting higher construction costs, tighter feasibility margins and more selective investment criteria.
“We continue to see solid enquiry for well-located, good-quality industrial property throughout Western Bay of Plenty,” said Mr Holmes. “While rental levels have generally improved, higher interest rates have softened yields and resulted in more cautious investor behaviour. Performance within the commercial sector remains location-specific. An outlier is certainly the new Rangiuru Business Park which has experienced significant development since the previous revaluation”.
Industrial rents have generally strengthened since the previous revaluation, supported by constrained supply and steady underlying demand for modern industrial accommodation. Well-positioned industrial assets within established and emerging precincts are transacting at firmer rental levels, albeit with yields reflecting current financing conditions. Despite this, ongoing development activity in key industrial growth areas continues to underpin confidence in the sector. Overall, Katikati industrial has experienced a positive 2.2% increase in capital value, and Te Puke reflects a 7.5% increase.
Horticulture/ Rural
Despite some volatility in recent years, the Kiwifruit industry has done 'reverse bell curve' between revaluations, with a slight softening of values for most. It is important to note that there has been significant strengthening post revaluation date, with some very strong sales observed in November/December 2025 and early 2026. There has been notable expansion in the eastern hills, around Pukehina and Pongakawa where overall land values have seen an increase as a result. It would come as no surprise to avocado operations, that the value of the trees has declined enormously.
Over the past three years, pastoral and dairy property values across the Bay of Plenty have generally eased slightly relative to 2022 levels, although performance has varied by location and asset quality. Select areas and higher-performing properties have demonstrated greater resilience, while others have experienced more noticeable softening.
Market activity has been characterised by low transaction volumes, elevated operating costs and fluctuating commodity returns, all of which have influenced purchaser confidence and tempered value growth. Consistent with trends observed across other sectors, a clear flight to quality has been evident. Farms offering strong soil types, reliable water supply and favourable contour have attracted the strongest enquiry.
What are rating valuations?
Rating valuations are carried out on all New Zealand properties every three years to help councils allocate rates for the following three-year period.
They reflect the likely selling price of a property at the effective revaluation date — in this case 1 August 2025 — excluding chattels. They are not intended for other purposes such as securing finance or determining insurance replacement value.
Market movements occurring after 1 August 2025 are not included in the new rating valuations.
Valuations are calculated using analysis of recent comparable sales, with many properties physically inspected — particularly those that have had building consents issued during the past three years. All rating valuations are independently audited by the Office of the Valuer-General before being finalised.
New rating values will be posted to property owners after 11 March 2026. If owners disagree with their valuation, objections may be lodged until 24 April 2026.
